Jim Kunstler: Geopolitical Consequences of Peak Oil
[Anti-sprawl expert, author, Geography of Nowhere, Home From Nowhere, The Long Emergency. His website features the Eyesore of the Month.]
Why would anyone want to fight to defend big-box sprawl?
My three previous books were concerned with the physical arrangement of life, the issue of suburban sprawl, the most destructive pattern the world has seen, and the worst misallocation of resources. But I'm going to talk today about global oil.
The peak and the arc of depletion that will follow—we're unprepared and we're sleepwalking into the future. Global production peak will change all our assumptions, compel us to do things differently whether we like it or not.
The main argument from the other side is that suburban life is a choice and therefore must be good. But that choice is coming off the menu. Aside from its logical incoherence, that choice is not going to be there anymore.
No one knows exactly when. You can only tell those things in the rear view mirror. When US production peaked in 1970, it was only obvious looking back from 1970. We are now producing 5 million barrels a day in the US, down from 10 million in 1970. These companies have to report their numbers.
The Yom Kippur War led to the oil embargo, which was effective because everyone in the world recognized that we had passed our peak, and were no longer the swing producer that could drive down the price by putting more on the market; OPEC was in that position. This was a tectonic shift in world economics. We had a very rough decade, 20% interest rates, high prices of oil and everything related to it, this strange condition of stagflation, high unemployment. We had a second oil crisis in 1979, Iran's Islamic revolution; the 70s wee closed in desperation, and it led to the worst depression, in the 1980s, that we'd had since the 1930s. But we got over it. And a lot of Americans concluded that this was about profits, and drew the wrong conclusion about why we got over it. The 70s crises had sparked drilling and exploration in non-OPEC countries, and the North Sea (UK/Norway) and North Slope (Alaska) fields went on line, bringing prices down to $10 a barrel. This oil glut was an unfortunate illusion; it amplified the Great American Sleepwalk. These are past peak and well into depletion.
We hear a lot about technology saving us. Technology is not the same as energy, and they're not interchangeable. And it has interesting diminishing returns. The better the technology got for extracting oil, the more efficiently we depleted the oil fields. In the meantime, England, after a 20-year oil fiesta, has become a net importer, and the implications are grim. Now we have compelling reasons to believe we have reached a global peak. Russia, 1986, Iran, US, Mexico, Venezuela, all past peak. But not Saudi Arabia. Saudi Arabia has been the great mystery. We have no access to their data, they're not publicly held companies, and their numbers are not transparent. Over the last 12 months, Saudi Arabia seems to have lost the ability to function as the world's swing producer. We've been begging them for an extra million barrels a day, and they've been promising, but they don't do it. Maybe they can't.
When the demand line crosses the supply line, that's a pretty good sign. The hurricanes have accelerated our energy problems. We've seen the impacts of global warming with the peak oil problem.
The intensity and size of the hurricanes were the result of higher ocean temperatures, and that led direction to the destruction of oil platforms.
The world does not have to run out of oil or natural gas for severe instabilities to appear. All that has to happen is to reach the peak and fall steadily. This will set in motion all sots of problems in the complex systems we rely on. We already see this in the first oil-related military ventures, to pacify people in the Middle East who don't like us.
Can we occupy? The Iraq war is only the overture to more desperate contests. China is rapidly industrializing, they are closer to the Caspian, and they can walk in. We have to imagine whether we can fight a land war in [multiple simultaneous] unfriendly countries, including China, indefinitely.
Industrialized societies will no longer enjoy the 2-7% annual growth of the last century. Investment instruments are all keyed to the expectation of growth. If deprived of the most crucial resource, that will have a tremendous impact on people's faith in the financial instruments.
No combination of alternative fuels/systems will allow us to run the way we're running it. We are not going to run Disney World, the Interstate highway system, and Wal-Mart on biodiesel, We're very delusional a bout these things.
We've come to believe the false promise of Las Vegas, that it's possible to get something for nothing.
We've been basing our growth on the building, accessorizing, and furnishing of suburban sprawl. We've put all of our resources of the postwar period into this enterprise, to produce a living arrangement with no future. If you subtract the sprawl economy, the housing bubble, there's not much left in the economy besides hair cutting, fried chicken, and real estate.
We'll discover that the American way of life will be negotiated, like it or not. History doesn't care if we succeed or fail. The Jolly Green Giant is not going to move suburban houses closer together. But there are intelligent responses that can be described with precision.
We're going to have downscale and resize everything we do. This is the master ecological project of our time, and we're not prepared. It doesn't mean we become a lesser people, but at the scale we conduct the work of everyday America, we're going to have to fit the requirements of a post-cheap-oil age. We're going to have to live intensely locally. The ADM (formerly called Archer Daniels Midland)/Cheese Doodle agriculture is not going to survive. The successful economies will have to be supported by local agriculture. The places that cannot do this—Phoenix, Las Vegas, our big cites—will fail. The industrial city of the 20th century may not be the appropriate scale. They will contract and redensify in their centers and waterfronts, if we're lucky. Many cities are already contracting.
Places burdened with megaskyscrapers are in for an additional layer of trouble: NYC, Chicago. We have no idea if we can run these in a non-cheap oil/natural gas economy.
But something will be in most of these places. Our cities occupy important sites.
I have a measure of how well we're doing: our railroad system would be an embarrassment in Bulgaria. That's one concrete thing we can do; we have the infrastructure and knowledge, and it would give us confidence. The Democratic Party if it doesn't get serious about this, will be marching off to the Museum of Extinct Political Parties. We rebuild the railroad system or we are in trouble.
We will make better choices or face social/economic/political disorders.
We were once brave, resourceful, honest, industrious, and earnest people, but in the last couple of decades, we've become fat, lazy, distracted, unserious people. We have to get over the idea that we're entitled to a certain outcome in life,. If we can recover those elements of our collective character, be guided by the "better angels of our nature" (Lincoln). We didn't used to seek refuge in make-believe all the livelong day. We knew the difference between wishing on a star and making things happen. I hope we can face our problems with a renewed serious open and intelligent American character.
Shel Horowitz, editor of Down to Business and Peace & Politics, has been writing about sustainability and social change for over 25 years. Click here to learn about his award-winning book, Principled Profit: Marketing That Puts People First, and his campaign to change the world of business with an ethics pledge campaign.
To contact the Marion Institute, which organized the conference, Click here or call the Institute at 508.748.0816.